NEW DELHI: India is thinking about development a number of refineries as a substitute of a unmarried mega plant deliberate with Saudi Aramco and Abu Dhabi National Oil Company (ADNOC), because of demanding situations in obtaining land, 3 assets aware of the subject mentioned.
Hurdles in land purchases are one of the crucial key causes for gradual infrastructure building in Asia’s third-largest economic system.
Aramco and ADNOC joined a consortium of Indian state-run companies in 2018 to arrange a 1.2 million barrels-per-day coastal refinery and petrochemical plant in western Maharashtra, in the hunt for a competent outlet for his or her oil.
Delays in obtaining a fifteen,000-acre land parcel have just about stalled the venture, to begin with deliberate for 2025, and boosted prices via 36% to $60 billion, as in keeping with estimates made in 2019.
“There is a proposal that instead of one we can actually have three, which is a matter of discussion between the companies involved,” mentioned one of the crucial assets.
Attempts to obtain land failed because of problems together with farmers’ refusal to give up their land, fearing the venture may just injury the Ratnagiri area famed for its Alphonso mangoes, cashew plantations, and fishing hamlets.
Aramco and ADNOC personal 25% every within the three way partnership Ratnagiri Refinery & Petrochemicals Ltd (RRPCL), an organization named after the area the place the refinery was once to begin with deliberate.
State-run refiners Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum cling the rest stake in RRPCL.
“The role of Maharashtra government is crucial in acquiring the land,” the supply mentioned.
Maharashtra’s industries minister didn’t reply to calls in the hunt for remark. RRPCL leader government MK Surana and ADNOC didn’t be offering feedback, whilst Aramco mentioned closing week: “We will respond at the earliest opportunity”.
Another supply mentioned ADNOC and Aramco had been acutely aware of the plan for a number of refineries.
“It is good to build the refinery at different sites if a huge chunk of land is not available as that will reduce investment risk,” mentioned a 2d supply.
“Also with multiple refineries you have the flexibility to modulate product slate in line with changing product demand patterns,” this supply mentioned.
Hurdles in land purchases are one of the crucial key causes for gradual infrastructure building in Asia’s third-largest economic system.
Aramco and ADNOC joined a consortium of Indian state-run companies in 2018 to arrange a 1.2 million barrels-per-day coastal refinery and petrochemical plant in western Maharashtra, in the hunt for a competent outlet for his or her oil.
Delays in obtaining a fifteen,000-acre land parcel have just about stalled the venture, to begin with deliberate for 2025, and boosted prices via 36% to $60 billion, as in keeping with estimates made in 2019.
“There is a proposal that instead of one we can actually have three, which is a matter of discussion between the companies involved,” mentioned one of the crucial assets.
Attempts to obtain land failed because of problems together with farmers’ refusal to give up their land, fearing the venture may just injury the Ratnagiri area famed for its Alphonso mangoes, cashew plantations, and fishing hamlets.
Aramco and ADNOC personal 25% every within the three way partnership Ratnagiri Refinery & Petrochemicals Ltd (RRPCL), an organization named after the area the place the refinery was once to begin with deliberate.
State-run refiners Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum cling the rest stake in RRPCL.
“The role of Maharashtra government is crucial in acquiring the land,” the supply mentioned.
Maharashtra’s industries minister didn’t reply to calls in the hunt for remark. RRPCL leader government MK Surana and ADNOC didn’t be offering feedback, whilst Aramco mentioned closing week: “We will respond at the earliest opportunity”.
Another supply mentioned ADNOC and Aramco had been acutely aware of the plan for a number of refineries.
“It is good to build the refinery at different sites if a huge chunk of land is not available as that will reduce investment risk,” mentioned a 2d supply.
“Also with multiple refineries you have the flexibility to modulate product slate in line with changing product demand patterns,” this supply mentioned.